README
Replication Instructions for: "Experienced Utility, Engel Curves, and Expenditure Choices"

This file provides instructions on how to replicate the analysis conducted in the paper "Experienced Utility, Engel Curves, and Expenditure Choices".

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DATA ACCESS

The data used in this study can be requested from the Italian National Institute of Statistics (ISTAT) by applying for access to the Scientific Use Files (SUFs).

To apply, the Principal Researcher of an accredited research institution must submit the following documents:
1. Research proposal
2. Confidentiality declaration by the Principal Researcher
3. Confidentiality declarations from all other researchers involved
4. Additional certifications (for joint projects, if applicable)

Relevant documentation and further instructions are available at:
https://www.istat.it/en/data/microdata/scientific-use-files-sufs/

To finalize the request, sign in at:
https://contact.istat.it/s/?language=en_US

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REQUIRED DATASETS

To replicate the analysis in this paper, you will need to request the following datasets for the year 2016:
- Household Budget Survey (HBS)
- Aspects of Daily Life (ADL)

Once both datasets are obtained and HBS's records are transformed from household to individual, a matched dataset is created using statistical matching techniques starting from the datasets "MScomma.csv" and "BFcomma.csv" (the former for ADL, the latter for HBS).
Refer to the script "DataManipulationMatching" for the full matching procedure.

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CODE STRUCTURE

Main Scripts:
- DataManipulationMatching.R: Handles harmonization, statistical matching, data cleaning, transformation, and preparation of variables for analysis.
- MainAnalysis.R: Contains the core statistical analysis presented in the paper.

Supporting Files:
- DataDictionary.txt: Contains detailed descriptions of all variables in the final dataset.


NOTE ON THRESHOLD ESTIMATION:

The code for threshold estimation is based on:
Yu, P., & Phillips, P.C.B. (2018). "Threshold regression with endogeneity". Journal of Econometrics, 203, 50–68.

To obtain the execution code for IDKE, please contact:
pingyu@hku.hk





